Question to the Minister of Cooperative Governance and Traditional Affairs - NW912

What steps have been taken by her department to stabilise governance and financial management at the Rustenburg Local Municipality?

The information to respond to this question was obtained from the North West Provincial Department of Cooperative Governance and Traditional Affairs:

Financial Management - The implementation of Municipal Property Rates Act (MPRA)
1. The Rustenburg Local Municipality was behind with the processes to comply with compilation and implementation of the General Valuation Roll (GVR) to be implemented on 1st July 2020. The North West Provincial Department of COGTA intervened and advised the Municipality to request for the extension of the validity period of the GVR, which was complied with and granted. The MEC responsible for local government in the North West Provnice further initiated and advised that the process plan be adopted which the Municipality did and the Steering Committee was appointed by the Municipal Council.

1. The Steering Committee meetings were held on a monthly basis from August 2020 with the support of the North West Provincial Department of COGTA discussing the progress in relation to the processes, procedures of the MPRA, including the importance of honouring the time-frames to ensure the smooth implemention of the new General Valuation roll with effect from 1 July 2021. Moreover, on the 28th of August 2020 a special council meeting was held regarding the determination on date of valuation as per section 31 of Municipal Property Rates Act no. 4 of 2006.

1. The Rustenburg LM received their new valuation roll at the end of January 2021 for implementation on the 1st July 2021 as prescribed by the MPRA.

1. On the 2 February 2021, the North West Provincial Department compiled Section 49 (1) (a) (b) and (c) letter to advising the Municipality on compliance thereof and the consequences of non-compliance as stipulated in terms of MPRA, which was subsequently followed by Sections 8, 9 and 20 letter on the 17 March 2021 advising on the categories of rates policy and limits on annual increase of rate to be properly aligned with the property categories.

2021/22 Intervention Measures:
1. The North West Provincial Department to continue to monitor the process to ensure smooth implementation of the General Valuation Roll on the 1st July 2021.
2. The North West Provincial Department will closely monitor the completeness of Section 49 of the MPRA process, which also includes Chapter 4 of the Municipal Systems Act, i.e. public participation.
3. The North West Provincial Department to ensure that the inputs to the Rates Policy of the Municipality finds expression in line with the new valuation roll to be implemented on the 1st July 2021.
4. There are continuous engagement session with Government Departments on debts owed to the Municipality for improved cash flow.
5. The Rustenburg LM has been identified as one of the big city in the North West Province to be monitored and supported on the ‘Responsible Citizenry Campaign’ initiative by Government. To this end, the Municipality was engaged to start with the launch of the Campaign.

Governance
1. A Section 154 of the Constitution support package was developed for Rusternburg Municipality in 2018 when Section 100(1)(a) was invoked, currently the North West Provincial Department is in a process of reviewing the Section 154 support package that will be integrated into the draft DDM One Plan for the Bojanala District Municpality.
2. The Provincial Department developed a dummy oversight report, together with the Municipality and provided guidance on the usage of the dummy oversight report.
3. The Provincial Department monitored and supported the Municipality on the drafting and submission of the oversight report to the legislature, in compliance with Section 132 of the MFMA. The Municipality managed to develop the oversight report before the national lockdown. A meeting to table the report to council was scheduled for 31 March 2020, but the report only served in the council after the regulations for level 3 on Covid-19 were issued out, which lead to the Municipality submitting its oversight report as well as annual report on the 12th June 2020. Feedback on the assessment of the oversight report was issued to the Municipality.
4. Training on how to address the Unathorised, Irregular, Fruitless and Wasteful (UIF&W) expenditure was conducted to support staff of the Municipality, as well as to the members of the MPAC, members of the Disciplinary Board and Finance Committees in collaboration with SALGA, National and Provincial Treasuries.